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Two easy steps for managing cash flow

1. Prepare a budget

Budgeting for the business financial year will help you foresee any cash flow problems before they occur. We may also need to see your budget if you’re applying for an ASB business or rural loan to help with your cash flow. You may want to split your budget into monthly cycles for closer management.

2. Forecast cash flow

Think ahead to what the next 12 months may bring, and monitor your cash flow forecast with what is actually happening in the business. Generally your forecast should include:

Cash receipts.

Cash payments.

Surpluses and shortfalls in receipts over payments.

Opening bank balances.

Closing bank balances.

Top tip:

It’s a good idea to get your cash flow forecast prepared by an accountant as they know exactly what to do and can give you professional advice.

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How to improve cash flow

Here are some simple ways you may be able to improve your cash flow. Remember this is a general guide so please seek professional advice for your own business.

Other helpful guides

ASB’s lending criteria, terms and fees apply. ASB’s Credit Card Conditions of Use and True Rewards Conditions of Use apply.

The above information is a guide only and should not be relied on as it does not take into account the financial situation of your business. You should seek your own professional advice to suit the particular needs of your business.